A shortage of public service vehicles has hit Kigali city, leading to long queues in the morning and evening by passengers at bus stops after one service provider pulled out to concentrate on upcountry services.

The withdrawal by Kigali Bus Services and lack of interest by other investors has left only one commuter service provider, Rwanda Federation of Transport Co-operatives (RFTC), which has over 1,000 vehicles.

Investors are said to have shunned the sector as a result of high taxes and high cost of commuter vehicles.

RFTC president Ludovic Dodo acknowledged that there has been low investment in the sector to meet the growing demand for public transport services due to fears by potential investors.

According to the last census, Kigali city is home to 1.3 million people during the day but the figure reduces to 1.1 million at night.

“The demand is very high compared with the resources that we have. It’s difficult to satisfy the city population,” said Mr Dodo.

Mr Dodo said potential investors have complained of high taxes the government has imposed on industry players, who have opted for other investment opportunities.

“The business is not profitable that’s why many people shun the industry. We have been here for a long time by sacrificing everything for the sake of Rwandans,” said Mr Dodo.

Although a coaster that carries 29 passengers costs Rwf57 million, operators also talk about high taxes that take large chunk of their profit.

“This business is subjected to high taxes from government and it is discouraging many potential investors,” added Mr Dodo.

The problem has forced Kigali residents to sort to readily available but expensive motorbike services to move from one point to other.

While the highest fare charged to any part of Kigali by a taxi operator is $0.3, motorbike operators charge their services depending on demand.

They charge an average of $1 off peak although the figure can be doubled when the demand is high during peak hours.

Geoffrey Musisi, an employee of Bank of Kigali who relies on the motorbike service to come to work, says it is an expensive option.

Musisi spends $2.7 everyday on motorbike transport to get to work and return home.

“Transport in Kigali is a big problem, we are forced to incur high transport costs or else we report to work late — you can’t give this an excuse,” said Mr Musisi.